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Taxation of Global Income of Residents

21 July 2017

Can a resident in India who has suffered Long term capital loss by sale of Immovable property in USA carry forward and set off against income earned(against Capital Gains) in India?

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6 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 21 July 2017

yes he can

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V.Raghunadh (Practicing Advocate and Corporate Consultant) (202 Points)
Replied 21 July 2017

with REF To case ITA 726/PUNE/205, when a resident who is an ordinarily resident is liable to pay tax on foreign income, going by reverse logic he can set off foreign loss with Indian income.

akilsharma (student) (28 Points)
Replied 22 July 2017

yes you can but only against income from long term capital gain alone allowed to set off.

Siddarth P (17 Points)
Replied 22 July 2017

Is there any clause in DTAA with USA which says that Income from HP earned outside India by a ordinarily resident is not taxable in India and hence no requirement to disclose the same in Indian Tax Returns?

If yes, please share the relevant section or clause or article which provides so.

Siddarth P (17 Points)
Replied 22 July 2017

Which section provides for setting off such LTCL incurred outside India with the Indian Income?

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V.Raghunadh (Practicing Advocate and Corporate Consultant) (202 Points)
Replied 23 July 2017

To my knowledge I never came across such case but one wise thing is to disclose the income in your return. There are two advantages:
1. If not allowed to set off against Indian income the IT Authorities themselves will raise the objection.
2. If you go for appeal and fight it will become a land mark case.